Caspin Resources : Outstanding Drill Results at Serradella PGE-Ni-Cu Prospect

ASX RELEASE

27 July 2022

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Outstanding Drill Results at Serradella PGE-Ni-Cu Prospect

HIGHLIGHTS

• Excellent new drill results from the Serradella PGE-Ni-Cu Prospect include:

1. 17m @ 2.13g/t 3E and 0.17% Ni; including

1. 3m @ 5.48g/t 3E and 0.17% Ni; and

1. 25m @ 1.01g/t 3E and 0.16% Ni within YARC0036

• 1. 8m @ 1.04g/t 3E and 0.16% Ni within YARC0042
• Confirms the Serradella Prospect as a significant PGE discovery with large-scale potential
• Assays from several key drill holes still to come, planning for follow-up program well underway

Caspin Resources Limited (ASX: CPN) ("Caspin" or "the Company") is pleased to announce impressive new assay results from the Serradella Prospect, at the Company's Yarawindah Brook PGE-Ni-Cu Project in Western Australia. These latest results confirm a significant PGE discovery at Serradella within an emerging PGE-Ni province.

Best Drill Results at Yarawindah Brook to Date

Assays from six RC drill holes at the Serradella Prospect have now been returned and include the Company's best-ever drill result at the Yarawindah Brook Project (Figure 1). Drill hole YARC0036 returned two excellent, wide mineralised zones of 25m @1.01g/t 3E (Pt+Pd+Au), 0.16% Ni & 0.10% Cu from 55m and 17m @ 2.13g/t 3E, 0.17% Ni & 0.03% Cu from 131m including 3m @ 5.48g/t 3E, 0.17% Ni &<0.01% Cu.

The results exceed the original discovery intercept in YARC0022 of 13m @ 1.08g/t 4E (Pt+Pd+Au+Rh), 0.26% Ni & 0.21% Cu, approximately 300m along strike to the north (see ASX announcement of 14 March 2022).

Over 750m away, YARC0042 has returned a broad anomalous zone of 111m @ 0.30g/t 3E, 0.09% Ni & 0.05% Cu from 71m including 8m @ 1.04g/t 3E, 0.16% Ni & 0.06% Cu. This zone is consistent with the previously announced geological targeting model and complements the results for YARC0040 of 91m @ 0.48g/t 3E, 0.11% Ni & 0.08% Cu (see ASX announcement of 7 July 2022).

Caspin's Chief Executive Officer, Mr Greg Miles, commented "These results provide a major breakthrough for the project. We've always believed that Yarawindah has the potential for a large economic deposit of PGE's, nickel and copper. Now that potential is starting to be realised. These results far exceed the magnitude of our original discovery hole and confirms that we're on a pathway to discovery.

"Whilst we celebrate this significant milestone for the project, we also acknowledge how much we have still to learn about this system. Whilst our broad scale targeting model still holds, we recognise there is an additional layer of more detailed control on high-grade mineralisation that we are yet to understand. We will need to infill the drill hole spacing to further define this high-grade zone, yet the best mineralisation may still lie beyond the deepest of our step-out holes. It's an exhilarating moment for the team and a fantastic time to be a Caspin shareholder. We can't wait to see how the next phase of exploration unfolds."

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Figure 1. Serradella Prospect drill hole locations over magnetics, highlighting recent significant results. The arrow demonstrates the direction of the conceptually more prospective parts of the intrusion. This figure also shows there are many holes still to be returned (orange dots).

YARC0036 is located in a poorly drilled part of the prospect except for several shallow holes in the up-dip position, including some of the best historical intersections in the project. Examples of significant historical intercepts include 29m @ 1.49g/t 3E (oxide) in YBR089, 17m @ 1.03g/t 3E (oxide) and 2m @ 5.33g/t 3E (likely sulphide) in YBR088 (note all historical results have been previously disclosed on 30 March 2021). Therefore, this area may yet prove to be the most important part of the prospect. Mineralisation is not constrained at all along strike to the southeast.

There are multiple mineralised zones now starting to be recognised at Serradella which have good continuity over several hundreds of metres and are open in multiple directions. YARC0036 has also demonstrated that YARC0039 did not drill deep enough to intersect the lower high-grade zone of mineralisation in YARC0036 and therefore mineralisation remains open down dip (Figure 2 and 3). YARC0039, and likely several other holes from the past program, will also need to be extended with diamond tails upon recommencement of drilling.

The broad mineralised intersection in YARC0042 supports the current interpretation and geological targeting model that hypothesises stronger mineralisation in the down plunge position to the northeast of current drilling. Similarly, the lesser, but not insignificant, results in YARC0043 and YARC0044 also support this

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interpretation. It should be noted holes YARC0042 and YARC0040 are over 200m apart and a significant high- grade body of mineralisation could easily be hidden between these holes given these systems can have rapid tenor changes over short distances.

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Figure 2. Cross section (refer to Figure 3) showing the relationship of YARC0036 to YARC0039 and historical drilling at the Serradella Prospect.

Full results and details can be found in Table 1.

Next Steps

Infilling the drill spacing around YARC0036, and indeed across the prospect area, may lead to identifying an economic deposit of mineralisation and is a priority for further exploration.

Assays for several key drill holes remain pending, including YARCD0025 and YARCD0027 for which the Company has previously released observations of apparent mineralisation (see ASX announcement of 2 May 2022). The results from these holes will help refine the current interpretation and the focus for infill drill targeting. Samples from YARC0036 have also been re-submitted for full six PGE assay.

The broad scale approach to exploration so far has allowed the Company to develop a conceptual model which indicates potentially stronger mineralisation, associated with the basal contact of the intrusion, is located to the northeast of the current drill area (Figure 4). This target will also remain an important priority for further drill testing.

Assay turn-around times, including six PGE analysis, continue to be poor and has been a frustration for the Company and shareholders alike. The Company believes that the most prudent course of action is to collate

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and interpret all assay results to ensure the most capital efficient and impactful drill program can be delivered upon recommencement. It should also be noted that wet weather and ground conditions currently prevent drill rigs from operating across the prospect. Therefore, the current exploration programs at the Mount Squires Project are well timed to utilise this gap in activity at Yarawindah as well as offer another avenue for discovery and shareholder value.

The Company looks forward to providing further updates from both projects in the near future.

Figure 3. Yarabrook Hill prospects, geology of the intrusion and drill hole plan.

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Figure 4. Serradella Prospect 3D geology model, demonstrating the conceptual target for further drill testing.

TABLE 1: Significant Drill Intercepts - Serradella Prospect

																						INTERSECTION
															EOH
	HOLE ID		East		North		RL		Dip		Azi		From		Width	Pd		Pt		Au		Ni		Cu
							(m)		(m)		(m)	g/t		g/t		g/t	%	%
	YARC0036			429804		6560598.929			284		-70		240		170			43		5		0.15		0.06			<0.01		0.13		0.02
																	55	25		0.69	0.27		0.05	0.16	0.12
															Incl			74		3		1.60		0.78			0.06		0.14		0.06
																	131	17		0.39	1.73		0.01	0.17	0.03
															Incl			131		3		0.48		2.16			0.01		0.16		0.05
															And	144	3		0.87	4.60		0.01	0.17	<0.01
																		151		2		0.06		0.15			<0.01		0.16		0.05
YARC0037	429464	6560752		276	-70	230	120		68	1		0.05	0.03		0.25	0.13	0.34
																		77		1		0.20		0.09			0.02		0.19		0.06
YARC0042	429731	6561369		294	-70	230	254		71	111		0.21	0.08		0.01	0.09	0.05
															Incl			171		8		0.58		0.41			0.05		0.16		0.06
																	200	16		0.24	0.12		0.01	0.09	0.07
	YARC0043			429455		6561372			304		-70		230		264			43		17		0.32		0.10			0.02		0.08		0.12
															Incl	49	1		1.11	0.32		0.05	0.13	0.27
																		63		5		0.24		0.07			<0.01		0.09		0.10
																	116	7		0.17	0.13		<0.01	0.12	0.05
																		134		16		0.11		0.07			<0.01		0.11		0.03
																	170	3		0.12	0.07		0.04	0.12	0.14
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